U.S. markets closed
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.83 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.11 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    108.46
    +2.70 (+2.55%)
     
  • Gold

    1,812.90
    +5.60 (+0.31%)
     
  • Silver

    19.85
    -0.50 (-2.44%)
     
  • EUR/USD

    1.0426
    -0.0057 (-0.54%)
     
  • 10-Yr Bond

    2.8890
    -0.0830 (-2.79%)
     
  • GBP/USD

    1.2103
    -0.0072 (-0.59%)
     
  • USD/JPY

    135.1750
    -0.5530 (-0.41%)
     
  • BTC-USD

    19,245.98
    -130.19 (-0.67%)
     
  • CMC Crypto 200

    420.84
    +0.70 (+0.17%)
     
  • FTSE 100

    7,168.65
    -0.63 (-0.01%)
     
  • Nikkei 225

    25,935.62
    -457.42 (-1.73%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Macy’s stock soars premarket on earnings beat, lifted guidance

In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Yahoo Finance Live anchors discuss first-quarter earnings for Macy’s.

Video Transcript

- So here are three things that you need to know right now. More retailers out with earnings this morning. This time, we heard from Macy's, Dollar Tree, Dollar General, all of them out with their numbers this morning.

And all of them-- and this is a change, isn't it-- are trading higher ahead of the bell this morning, and higher in double digit terms in all of these cases here this morning. So it's really interesting, because now we have the question before us, I think for the retailers, of--

- Yes.

- --what's happening in the macro environment versus what these individual companies are doing? So let's run through them. I want to start with Macy's here, because Macy's has obviously been struggling for quite a while.

- Right.

- But the company is now raising its profit forecast. And that's after it came out with numbers that were better than estimated by a pretty wide margin here, as you can see, particularly, on the profit line. And this is again, a change here. We've been watching gross margin and inventories for these companies so closely.

- Right.

- So let's talk about them here. Gross margin up to 39.6%. I'll say that again. Gross margin rose at Macy's--

- Very impressive.

- --which is not we've been seeing. And inventory was up by 17%, which is a smaller rise than what we've been seeing from other companies.

- Right. And some of the retailers we're getting into now, these-- we've already had a lot of the big ones report. Walmart and Target were famously-- last week, those were disasters. The smaller ones, though that have not fared as well as some of the bigger ones throughout the pandemic, I think the comps are just a little bit easier because they were performing so poorly in the interim. So it's nice to see these numbers pick up.

I think we need to I guess treat them with a grain of salt. Let's go to our heat map for the retail intraday. And I have the market quotes for the premarket here. In the upper left, there's Dollar Tree. We're going to get to that in a second. That's up 15%.

Macy's was up 9.09% yesterday. It's up 13% in the premarket. And let's take a longer term chart. This is a year-to-date, and you can see Macy's, like so many other stocks, just kind of fell off a cliff in early May. Here is a three-year look that captures all of the pandemic. And it's still actually in the upper end of its range there, just barely.

But here's a 10-year look. And you can see quite depressed, off 50% and off even more, probably more like 75% from this high in 2015. So a lot of these retailers have been trying to fix their digital strategies and are finally probably catching up. So it's nice to see them in a position to announce these numbers now.

- There's also been a shift in what consumers are spending on. We saw that very clearly with Walmart and Target. In the case of Macy's, it says people are not spending as much on things like athleisure and on home goods, but people are spending more on stuff to go out in, apparel to go out.